09:30 Ian Paisley (North Antrim) (DUP)

That this House has considered the introduction of UK-made zero-emission buses.

The debate is about the introduction of UK-made zero-emission buses. Why do I say “UK-made” and “zero-emission” buses? Across the whole United Kingdom, 40,000 buses are on the road; about 3,000 of those buses are zero-emission, so there is a huge opportunity. Government, obviously and rightly, want to get away from diesel-powered buses and on to zero-emission buses. That is a massive opportunity. That opportunity, however, is under threat.

I am afraid, however, that the Department for Transport needs to look at how the policy is implemented, because I do not believe it is resulting in beautiful, British-built buses being purchased with the serious amounts of money that have been set aside for the zero-emission bus regional areas, or ZEBRA, zero-emission scheme. The original ambitions that drove the design of that policy to support UK bus manufacturers have been overlooked in the implementation and roll-out of the policy, resulting in many local authorities and transport authorities buying non-UK-made British buses.

I was going to come on to that point later, but I will come on to it now, because it gets to the nub of the issue. The ZEBRA 1 and 2 schemes promised the United Kingdom £312 million of taxpayers’ money to fund the purchase of 2,270 buses. That is a major impact on the provision of zero-emission buses. I hope that Members are shocked by the next figure, however, because, according to the final purchasing decisions that have been made, 46% of those 2,270 buses will be manufactured outside the UK, principally by China.

On the one side, we have to giggle, because we are making zero-emission, green-energy buses, within our shores, for the home market, and therefore the footprint of the manufacturing of those things should also be green, but 46% of these buses are coming from what is, apart from Australia, the furthest away country in the world, and they are being delivered to us. I am not going to bash the companies that make them in China, but their buses have a shorter life cycle on our roads—almost a third less—and are therefore ultimately less efficient, yet 46% of the ZEBRA money is going overseas. What is that money doing? It is supporting overseas technology—cutting-edge technology. It is supporting overseas jobs. It is supporting cutting-edge, well-paid, highly skilled manufacturing jobs and it is supporting them in other countries, but we are crying out for that money to be spent on high-skill, green-energy, high-tech jobs across the entirety of the United Kingdom. Some 10,000 people are employed in the supply chain for manufacturing buses across the United Kingdom: electronics engineers, hydrogen engineers and manufacturers, engineers, of steel. All that is being undermined by a policy that was put in place to build beautiful, British-made, clean, green, better buses.

Every constituency in the UK benefits from British-made manufactured products. I do not say that glibly; it is based on fact. I have gone through a register of all the councils and local authorities across the whole United Kingdom that have received money from the ZEBRA zero-emission scheme, and have listed all the constituencies covered by that—it comes to about 180 constituencies, and those 180 constituencies benefit in some way from the manufacture of buses in the United Kingdom. They are getting ZEBRA money, but unfortunately 46% of the money is going outside this country and they are not buying the British product.

The Department for Transport should consider creating a Crown Commercial Service framework for zero-emission vehicles to supply and expedite the tender process. It should collaborate with other Government Departments to conduct a formal review of how other countries purchase buses and prioritise domestic content when evaluating their tender process.

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09:49 Iain Stewart (Milton Keynes South) (Con)

It is a pleasure to serve under your chairmanship, Mr Rosindell. I congratulate the hon. Member for North Antrim (Ian Paisley) and my right hon. Friend the Member for Scarborough and Whitby (Sir Robert Goodwill) on securing this important debate. I have worked on the subject of zero-emission buses for some time, both in my current role as Chairman of the Select Committee on Transport and in my previous guise as a Minister in the Scotland Office, when I had a number of dealings with Alexander Dennis in Falkirk.

I was particularly pleased when the Falkirk growth deal was agreed with Falkirk Council, the Scottish Government and local stakeholders. If memory serves me correctly, that included £10 million for a public transport net zero tech cluster that Alexander Dennis was closely involved in. This is a really important sector and I share the ambition of the hon. Member for North Antrim to have a vibrant zero-emission bus network, with the lion’s share manufactured by companies on these islands.

The Government are right; they are putting a lot of money into zero-emission buses. The UK sector is world-leading and has enormous potential to become a major player both here and by exporting those buses overseas. However, I think we need to step back a little and look at the issue in the round. I hope today’s debate will help further that cause, and I once again thank the hon. Member for North Antrim for making the effort to secure it.

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09:56 Kenny MacAskill (East Lothian) (Alba)

There is also a need to decarbonise, which should be about a virtuous circle. We have to change, because global warming is happening. Although huge progress has been made by the motor industry—I recall arguments in the city of Edinburgh over pollution from diesel buses, which has reduced significantly—there comes a time when we have to recognise that our vehicles have to transition as we change to renewable energy. I know that we are looking at electric buses, but I will come on to argue for hydrogen buses, which Alexander Dennis Ltd manufactures. There is good reason for that.

Hydrogen buses operate in Germany, in Aberdeen and probably in the City of London. They certainly operate in Glasgow: Alexander Dennis Ltd is there. Scotland is decarbonising. Hydrogen is coming in. The National Grid electricity system operator tells me that it anticipates that 100% of the green hydrogen manufactured in the UK will be manufactured in Scotland. It is not rocket science to join the dots. Hydrogen is coming in. There is a plant going to Grangemouth, a stone’s throw from Alexander Dennis Ltd in Larbert.

A hydrogen plant is coming to my own constituency because there is decarbonisation going on in the whisky sector. When I spoke to the people bringing in the hydrogen factory, I said, “Will you have excess hydrogen?”. They said yes. I said, “Could we use it for fuel?” They said, “Absolutely.” I live in a more rural area, but it certainly makes smaller buses more affordable if we can have cheap energy that is being manufactured and would otherwise go to waste. That is why in the Orkney islands they are looking at hydrogen-propelled ferries: because they have so much hydrogen being manufactured on one island that they cannot get it off the island.

Hydrogen is the fuel, but we have to have a virtuous circle. We need to decarbonise and alter our society, but the new renewable future should not just be based on manufacturing. We need a just transition. We should ensure that the fuel that we are blessed with—cheap and available green hydrogen—is used to fuel buses that are manufactured here, preferably in Falkirk and certainly in the United Kingdom. That is a just transition. The purchasing of buses from China is an unjust transition. Like what is happening in the North sea, it is a selling out of those who have contributed to the economy of this country over years and who should be the basis of the new economy that we are required to enter into.

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10:10 Jim Shannon (DUP)

Like many others, I was delighted back in September when funding was announced for zero-emission buses. If we are ever to reach our global targets, this has to be a major part of our strategy. It was great to see that towns, villages and cities across England, including in the most rural parts of the country, were to benefit from zero-emission buses backed by £129 million of Government funding, which would also help to grow the economy by supporting green jobs at UK bus manufacturers. I particularly recall a point that was highlighted in the press release:

This brings our total investment in new zero-emission buses to almost £500 million, helping to kick-start a new generation of bus manufacturing in the UK and create good, high-quality jobs from Scarborough to Falkirk.

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10:17 Gavin Newlands (Paisley and Renfrewshire North) (SNP)

I start by thanking the hon. Member for North Antrim (Ian Paisley) for introducing this debate and for bringing up this issue again, as he often does. As the hon. Member for East Lothian (Kenny MacAskill) said, it is uncomfortable to agree with pretty much everything that all the DUP representatives have said in the debate thus far, apart from the last sentence of the hon. Member for Strangford. That is not always a comfortable position for an SNP Member, but I thought the hon. Member for North Antrim set his case out extremely well to remedy the unacceptable situation in this country. He spoke of the three major bus manufacturers. I have visited Alexander Dennis in Falkirk and Camelon a couple of times and spoken to it many times. The hon. Gentleman spoke of the 40,000 buses, only 3,000 of which are zero-emission, and the 4,000 British-built green and clean buses that were promised by a previous, previous, previous, previous, previous Prime Minister—however many previous it is. They said that they would be manufactured in the UK. The initial aim of that commitment has been lost.

The hon. Gentleman mentioned imports, and that gets to the crux of the issue. Some 46% of those buses were manufactured outside the UK. The vast majority come from China. That is the case in my constituency. I will come on to say how good a job the Scottish Government have done in getting on with ordering zero-emission buses, but we have the same issue with the import of Chinese buses in Scotland. Renfrewshire, in my constituency, with McGill’s, has the highest concentration of zero-emission buses anywhere in the country outside of London, a fact of which I am proud. The fact of which I am less proud is that the clear majority of those buses are Chinese-manufactured. I wish to see that change.

The hon. Member for East Lothian spoke of the Brexit bonus that was plastered on the side of the bus; the irony is that we are not seeing the Brexit bonus in bus manufacturing in this country. He spoke of global warming, and how important it is that we decarbonise as quickly as possible. He made a very fair point that electric buses are not the solution—certainly at the moment—for many rural routes, particularly in Scotland: hydrogen may be a better alternative for those services. He also made the point that Scotland is almost uniquely placed in Europe to deliver the green hydrogen that would support such an endeavour—in fact, it is probably better placed to do so than anywhere else in Europe.

The hon. Member for Mansfield (Ben Bradley) spoke of the £13 million for the scheme towards a new zero-emission bus fleet, as well as the challenges on infrastructure, with which I think we all agree. He also spoke of his disappointment at not being elected Mayor—I suggest the hon. Gentleman is somewhat of a masochist, addicted as he seems to be to standing for election.

In addition to the questions already asked by the hon. Member for North Antrim, I would like the Minister to directly answer these three questions. Does he think that highly skilled engineering and manufacturing in this country can compete with China on labour costs? What work has been done in Government to identify how other European countries that follow the same trade criteria obligations as us manage to support their domestic manufacturing sectors a hell of a lot better than we do? Lastly, particularly when compared to the Scottish ultra low emission bus schemes—SULEBS 1 and 2—and now the zero-emission bus schemes—ScotZEBs 1 and 2—would he agree that his Government’s ZEBRA schemes have been an unmitigated failure?

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10:27 Simon Lightwood (Labour)

This is a vital issue, and it is right that we have had the opportunity today for such robust discussion. I place on record my thanks to the excellent, insightful contributions that we have heard from colleagues throughout this debate, including the hon. Member for Milton Keynes South (Iain Stewart), Chair of the Transport Committee. I share his desire for a vibrant zero-emission bus fleet in the UK, with the majority manufactured on these islands, and I agree on the need for fair competition and that the true cost must be highlighted. I also thank him for his mention of the end-of-life processes for those buses and how those should also be taken into consideration.

Labour knows that decarbonising the transport sector is essential to achieving net zero. Decarbonising what is now the single largest source of the UK’s carbon emissions will be no easy feat, but Labour is crystal clear that with those challenges come enormous social and economic opportunities. Across road, rail and bus there are immense opportunities for secure, high-skilled green jobs to power our next industrial revolution. With bus being by far the most utilised mode of public transport, zero-emission buses are central to that.

Across the UK, operators and local transport authorities are already taking great strides to decarbonise their fleets, meaning that demand for zero-emission buses will only continue to rise. However, it is clear that the flagship decarbonisation scheme known as ZEBRA, which was announced with much fanfare two Transport Secretaries ago as part of bus back better, continues to be woefully off-target.

Bus back better promised 4,000 new zero-emission buses on the road, but it also promised to set a date for ending the sale of new diesel buses in the UK. Neither of those promises have been met. The Government continue to dither on the phasing-out date, leaving both manufacturers and operators in the dark. In July 2023, the previous Transport Minister—the right hon. Member for North West Durham (Mr Holden)—promised that a response to the DFT’s consultation would be forthcoming “within months”. Well, almost 12 months later, it is still the case that no Transport Minister is able to tell us on what date they will mandate the end of new diesel bus sales. The current Minister with responsibility for roads and local transport, who is here today, told the House in response to a written parliamentary question in January this year that more information would be provided “in due course”. Almost five months on, we are none the wiser.

In the absence of leadership on this issue from the Government, large operators have resorted to setting their own targets. National Express has committed to operating only zero-emission buses by 2030, and Go-Ahead, First Bus and Stagecoach aim to have fully decarbonised fleets by 2035. Although that is commendable, the continued silence from the Government on the end date for diesel bus sales will doubtless have the biggest impact on smaller and more rural bus operators.

As I mentioned, bus back better also pledged 4,000 zero-emission buses. I regularly quiz the DFT on the latest statistics about the roll-out of zero-emission buses funded by ZEBRA. The most recent statistics, which I was able to obtain last month, show that just 313 are on the road and 1,053 have been ordered using ZEBRA 1. That means that to date the Government have achieved barely a quarter of ZEBRA’s potential. The successful bidders in the next phase of ZEBRA—ZEBRA 2—were announced back in March, funding a further 955 zero-emission buses. But even if every single one of those buses is somehow on the road by the end of this Parliament, the Government will still fall considerably short of their target. Even the Chair of the Transport Committee said last year that “it seems increasingly unlikely” that the Government will meet their target.

Despite bold steps by operators, local transport authorities and manufacturers, it is clear that we have a long way to go before we decarbonise our bus sector. I would be grateful if the Minister could tell me exactly how many zero-emission buses he thinks he will be able to deliver on the road by the end of this Parliament. For the UK’s leading bus manufacturers—Alexander Dennis, Wrightbus and Optare, or Switch—the ambition and appetite for zero-emission buses is an enormous opportunity. Our bus manufacturing sector directly employs 3,500 staff across the UK and supports a further 10,000 across the supply chain.

Those companies are world-class, trailblazing manufacturers producing some of the most advanced zero-emission and ultra low emission buses anywhere on the globe. Not only are their products world-class, but they are vital employers, contributing millions to the UK economy. I regularly meet them and they frequently tell me about their fantastic apprenticeship schemes and training and upskilling programmes. But under the Government’s approach to decarbonising the bus sector, those companies are at risk.

Labour is realistic about the fact that, as demand for zero-emission buses increases globally, competitive manufacturers will be involved in the supply chain. However, we are at a crossroads. Britain under the Tories risks losing the global race for the clean industries of the future, losing jobs overseas and betraying communities across the country. The hon. Member for North Antrim is right to question whether taxpayer-funded schemes to support the introduction of zero-emission buses should be delivered in a manner that helps UK bus manufacturing industries more. We must remember that the Government have refused to adopt a full-scale industrial strategy since 2017. We should make no mistake: the lack of a strategy from the Government is putting home-grown bus manufacturers at risk. Alexander Dennis tells me that, with enough joined-up thinking from the Government, the company could spool up production to meet demand, but, in the absence of certainty, it may have to reconsider its future in the UK.

Labour will always back British industry. A Labour Government will act as a strategic industrial partner, setting out clear priorities to provide the certainty that businesses and investors need to solidify the UK’s position as a leader in clean industry. That extends across the EV supply chain. Labour will accelerate domestic battery-making capacity with a national wealth fund to part-finance the new gigafactory capacity that we will need to support the green transition. Not only will that create thousands of good, green jobs in the supply chain and add billions to the UK economy, but it will provide the certainty that UK bus manufacturers desperately need to continue to play a leading role in the UK’s decarbonisation.

Labour stands ready to embrace the green transport revolution and knows that zero-emission buses are essential to that. The UK has a world-class bus manufacturing sector that can, with the right policies from the Government, deliver millions of pounds-worth of economic growth by leading the transition. We need more action from the Government to ensure that our home-grown bus manufacturers can continue to thrive.

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10:39 The Parliamentary Under-Secretary of State for Transport (Guy Opperman)

I congratulate the hon. Member for North Antrim (Ian Paisley) on securing the debate and I thank the Backbench Business Committee for recommending that it take place. I welcome it because it is an opportunity for us to discuss the successes and for me to set out the ways in which the Government are supporting the transition to zero-emission buses.

The UK has a proud history and particular expertise in bus manufacturing and it is right that we celebrate our successes. We acknowledge and accept that our bus manufacturers play a vital part in the UK automotive ecosystem, employing well over 3,000 people across England, Scotland and Northern Ireland. I suggest, with respect, that our bus manufacturers are very competitive. As has been outlined, Wrightbus has the first hydrogen-powered double-decker bus and Alexander Dennis continues to innovate with a new in-house series of electric buses developed with the knowledge and experience gained from working hand in hand with international partners. That has resulted in 2,300 zero-emission buses hitting the UK roads to date. The vast majority of the buses operating in urban areas are produced here in the UK and we are committed to continuing to make the UK one of the best places in the world for automotive investment as we transition to zero- emission vehicles.

Those late-stage collaborative R&D competitions are an important part of the Government’s support for the UK automotive sector’s transition to zero-emission vehicles and provide backing for new market-leading technology to underpin battery and fuel cell electric buses. There is also £460 million in dedicated funding provided for the zero-emission buses this Parliament. The innovative technology is to be deployed, we suggest, at scale. More than 5,200 zero-emission buses have been funded across the UK since the Government committed to funding at least 4,000 this Parliament, and UK manufacturers are leading the way.

In March this year, we announced a further £142 million to support almost 1,000 more zero-emission buses. I look forward to UK manufacturers winning more orders. For example, I think Wrightbus has been named the fastest-growing and most successful business in Northern Ireland, having been struggling a few years ago, however one interprets the business as it was. On the back of Government funding for zero-emission buses, the company’s numbers have massively increased, from more than 1,000 to almost double that. Bus funding in this country has pretty much doubled in terms of Government subsidy and support over the past 14 years.

The Minister talked about Government support. In fairness, it was before he was Minister, but he may remember a Transport Committee report that said that Scotland had ordered just over 10 zero-emission buses per 100,000 people, compared with 0.94 zero-emission buses outside of London. Does that highlight the success that the DFT has made of the roll-out?

We are also providing certainty for manufacturers on the pathway to a fully zero-emission fleet. The final decision on diesel buses will be made shortly; part of the process is understanding exactly the capacity and capability of our UK bus manufacturing sector—if one sets a date that is too soon, clearly there are consequences, but if one sets a later date, there are also consequences. We are very much engaged with finding the sweet spot for a date, and we will be making a decision without a shadow of a doubt in the very near future. We believe that will provide a greater degree of certainty, allowing further focus on research and development lines, and also shifting production to producing more zero-emission buses at scale.

It is also clear that as a result of the Government’s action, air pollution has reduced significantly, both since 2010 and, more recently, since the introduction of zero-emission buses: since approximately 2016 or 2017, there has been a true ramping up—a massive reduction in CO 2 .

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10:55 Ian Paisley

That this House has considered the introduction of UK-made zero-emission buses.

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